Thruvision Group plc Interim results to 30 September 2019 25 - - PowerPoint PPT Presentation

Thruvision Group plc

Interim results to 30 September 2019

25 November 2019

Highlights

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Revenues for the six months ended 30 September 2019 grew 53% to £4.8 million (H1 2018: £3.2 million)

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Operating loss before tax halved to £0.4 million (H1 2018: £0.8 million)

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A total of 64 Thruvision units shipped in the first half across our four target markets (H1 2018: 60 units) with product mix shifting towards higher performance units

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Broad-based sales success – Strong progress in the US, with both US Customs and Border Protection and Los Angeles World Airports added as new customers – Morrisons and Sports Direct became our ninth and tenth household name Loss Prevention customers – Macau Customs was added as our seventh international Customs agency customer, with Hong Kong Customs purchasing further units – Ongoing strategic progress made with US Transportation Security Administration

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Cash at 30 September 2019 of £8.7 million, with cash at 22 November 2019 of £10.0 million

Commercial momentum has been maintained, new flagship customers, particularly in the US, have been added, and repeat orders from existing customers received

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FY20 Half Year Income Statement

Page 2

£ million H1 2019 H1 2018 % change Revenue 4.8 3.2 53% Gross Profit 2.3 1.2 92% Gross Margin 48% 39% 9% Total admin expenses 2.7 2.1 32% EBITDA* (0.2) (0.5) (60%) Operating Loss (0.4) (0.8) (49%) Loss before tax (0.4) (0.8) (48%)

* Excludes share based payments, share buy back costs and financing fees

Strong revenue growth with move towards profitability

Strong revenue growth in organic unit sales. Unit volumes increasing to 64 v 60 Gross Margin growth as a result of higher margin new product sales Increased admin expenses following investment in Sales and Marketing, new manufacturing and R&D. Loss reduced as business moves to profitability.

Administrative Expenses

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Revenue growth up +93% Gross Profit >+100% Adjusted EBITDA* +22%

2.57

• 0.21

0.29 0.22 0.10 0.04 0.05 2.08 1.0 2.0 3.0 £m

Admin expenses 2019 H1 to 2020 H1

Cash bridge

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Revenue growth up +93% Gross Profit >+100% Adjusted EBITDA* +22%

8.66

• 0.20
• 0.78
• 0.19

0.24 0.21 9.37 6.0 8.0 10.0 £m

Cashflow 31.03.19 - 30.09.19

CUSTOMS

Checking travellers for concealed contraband

LOSS PREVENTION

Reducing staff theft from warehouses by up to 80%

Our five market segments …

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MASS TRANSIT

Protecting travellers from terrorism

ENTRANCES

Reducing queues while enhancing security

AVIATION

Deterring attacks to aircraft and airports

Potential market

• f many thousands
• f units per year

Aviation …

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Deterring terrorist attacks on aircraft and airports by passengers and employees

Market characteristics

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Significant growth in air passenger numbers

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New faster bag scanning technology making people screening the bottleneck

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‘Insider’ or employee threat seen as a growing risk

Employee screening

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Los Angeles World Airports and Seattle are already users with active pipeline of opportunity in the US

Passenger screening

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Developing new specialised AI-based solution with TSA’s Innovation Task Force 1

Airport concourse screening

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Delivered order to Asian government for airport concourse at beginning of period

LAX selected Thruvision to help manage ‘Insider’ threat

“There remain serious vulnerabilities and gaps in employee screening at airports

• nationwide. Frighteningly, we have seen multiple examples of aviation workers

with access to secure areas of airports being involved in serious criminal activities, including terror plotting, after being radicalized”

US Congressman John Katko, 2017

1 Existing TSA approval is for Surface Transportation use

Customs …

Market characteristics

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National government agency customers, principally screening for cash, drugs and other contraband

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Politically important for many customs agencies, but long sales cycles

Update

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Now have eight international Customs agencies using Thruvision

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Recent major award by US Customs and Border Protection now being piloted at several different land, air and sea “Ports of Entry”

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First order received from Macau Customs following fifth tranche of units ordered by Hong Kong Customs earlier in half

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Received “Blanket Purchase Agreement” from US State Department INL in July 2019

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Screening travellers for prohibited items at Ports of Entry

CBP screens more than 1 million international travellers arriving every day at its 238 Ports of Entry

Pedestrian Port of Entry on Southern Border US CBP becomes Thruvision’s eighth Customs Agency user

Loss Prevention …

Market characteristics

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Many retail customers and each with a growing number of distribution centres

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Increasing problem given shift to online retailing

Update

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Sports Direct becomes tenth new customer, with JD Sports a repeat buyer in period

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Recent global retail industry research1 estimates losses due to staff theft averages 0.4% of turnover meaning Thruvision delivers ROI in under 12 months

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Focus remains on Grocery, Apparel, Healthcare and Logistics partners

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Reducing staff theft at retail and logistics distribution centres (DCs)

“Thruvision not only operates to deter theft and speed up the shift exit process, but it allows us to show our staff respect.”

Tim Edwards, Group Profit Protection Director, JD Sports Fashion Plc JD Sports use Thruvision to improve the security process for employees, whilst simultaneously increasing the number of searches

1 Sensormatic Global Shrink Index, 2018

Mass Transit and Entrance Security …

Market characteristics

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Large number of potential uses across all types of facilities ranging from subway and rail stations, through high security buildings to public venues

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General counter-terrorism use requiring development of new concepts of

• peration

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Wide range of security threat detection requirements

Update

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Approved by UK Government’s new “High-Footfall Security” programme to protect public areas

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Knife crime trial with British Transport Police in September in London, Stratford with very positive public feedback

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Won high-profile government building project in Asia

Page 9

Balancing visitor throughput with security assurance at both public and private sites

Widely publicised knife crime trials with BTP in London

Ongoing technology development …

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Good progress with R&D, covering both hardware and software innovations, and active patent programme

‘Fusing’ of three different terahertz frequencies in new

• utdoor product that can detect

difference between metal, plastic explosive and skin Under contract to TSA, using advanced AI-based image processing techniques to automate detection and comply with US Air Passenger Security legislation New high performance 16 channel sensor to complement existing 4 and 8 channel product line up

Summary …

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Good headline growth in the period, with improving gross margins and reduced

• perating losses, in move towards profitability

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Further significant progress in the US, with both US Customs and Border Protection and Los Angeles World Airports becoming latest customers

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Further new and repeat customer wins in Loss Prevention

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Continued strategic progress towards passenger screening with TSA

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Successful ongoing product development programme

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Board remains confident Thruvision is well placed to exploit new niches in the international security market

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Support slides

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A new type of security technology …

Page 13 120 mm 1.2 mm 0.0005 mm 0.01 mm Safe Harmful

Wavelength

0.000001 mm

Technology type

Active Active Passive Passive Passive

Example

Airport scanner X-Ray scanner IR camera Video camera

MICROWAVE TERAHERTZ INFRARED

ULTRAVIOLET

XRAY VISIBLE

Where does “Passive Terahertz Technology” fit in ?

Existing technologies have significant drawbacks in terms of throughput and detection effectiveness

Addressing the need for fast, effective detection …

Page 14

Throughput Detection effectiveness

Metal only All Low High

Metal Detector Airport Body Scanner

Why is Thruvision different ?

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No “divestment” of clothing or personal effects

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No “pat downs” as concealed item can be seen

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Can screen moving people as well as those who are stationary

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Highly flexible and easy to deploy

Thruvision Limited 121 Olympic Avenue Milton Park Abingdon Oxon, OX14 4SA t: +44 (0) 1235 425400 www.thruvision.com

Colin Evans

Chief Executive

colin.evans@thruvision.com